Smart Building Market Worth 24.73 Billion USD by 2021

The smart building market is estimated to grow from USD 5.73 Billion in 2016 to USD 24.73 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 34.0% during 2016–2021. The base year considered for the study is 2015 and the market size forecast is from 2016 to 2021. The objectives of the research study is to provide detailed information regarding the key factors influencing market growth; strategically analyze sub-segments with respect to individual growth trends, future prospects, and contribution to the total market; analyze opportunities in the market for stakeholders; provide strategic profiles of the key players in the market to comprehensively analyze the core competencies; and draw competitive landscape of the market.

The research methodology used to estimate and forecast the smart building market begins with capturing data on key vendor revenues and the market size of the individual segments through secondary sources such as smart cities council, the EEE robotics and automation society, and Continental Automated Buildings Association (CABA). The vendor offerings are also taken into consideration to determine market segmentation. The bottom-up procedure was employed to arrive at the overall market size of the global market from the individual technology segment. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key industry personnel, such as CEOs, VPs, directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The breakdown of profiles of primary discussion participants is depicted in the below figure:

The major drivers for upsurge in demand for smart building technology solutions include emphasis on energy efficient buildings and reducing CO2 emission, growing initiatives by government authorities for the development of smart building projects, rising need for integrated security and safety systems, and rising adoption of IoT platforms within the building automation technology.

Evolving cloud-based IoT platforms and environmental concerns and green building initiatives offer major opportunities for smart building solution providers.

Buildings consume a lot of energy. According to the International Energy Agency, almost around 40% of the world’s energy is consumed by buildings. The growing consumption can be attributed to the increasing number of electrical appliances; increasing use of energy is raising the amount of energy wastage and CO2 emission, which leads to an urgent need for sustainable and efficient usage of energy. The market size of building energy management systems is the highest and is expected to grow at a significant rate across the globe. Moreover, growing demographics and hyper-urbanization is also pushing the market to adopt building energy management systems.

System integration and deployment services segment is expected to grow at the highest CAGR during the forecast period

The market for services would witness a major increase because of the rise in the adoption of smart building automation software, which is propelled by the increasing demand for system integration, consulting, support and maintenance, and managed service that support the implementation of smart solutions across the various building types.

Europe is expected to hold the largest market share in the Smart Building Market

As per the geographic analysis, Europe is likely to benefit from its technological advancements and a large number of smart city initiatives being undertaken in the region, which are already underway. The adoption of smart building solutions across Europe is estimated to rise at a significant rate due to the regulatory push, amended policy framework, operational efficiencies, cost containment, and sustainability benefits and the changing business dynamics. This which would eventually increase the penetration of system integration and deployment services in this region.

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